Payments: EC govt steps in

2003-07-04 08:53

Cape Town - The Eastern Cape's social development department has taken over indefinitely the payment of pensions and social security grants in six districts previously served by Cash Paymaster Services (CPS).

Speaking at a public meeting at the Ntaboduli village on Wednesday, MEC Neo Moerane-Mamase said: "We agree it was a mistake to take a company that has failed to prove its capability to render quality services.

"We also apologise for any suffering and ill-treatment."

The department has started payments in Qumbu, Tsolo, Engcobo, Cofimvaba and Lady Frere districts.

CPS is the one of two companies responsible for the distribution of social grants in the province.

CPS was previously only rendering services in Butterworth, Idutywa, Umtata, Libode, Mount Frere, Mount Fletcher, Mzimkhulu and Bizana.

Moerane-Mamase said the move was about giving CPS a chance to get its department in order.

"Our contractual agreement is still on and we'll give it up to three months but if it fails to improve, we'll see what to do."

The department has reverted to cheque payments but said it had tightened its system to curb any possible fraud.

Moerane-Mamase encouraged those unable to go to the pay points due to illness to register their proxies with the department's district office.

"We don't want to see people carried by wheelbarrow as this creates an impression that we're not a caring government and you should also stop sleeping at the pay points," she said.

The MEC's announcement was made following a statement by the chairperson of CPS, Mazwi Yako, on Tuesday.

Yako said: "A number of logistical issues have contributed to recent problems around pension payouts in the Eastern Cape."

Yako said he believed with the right co-operation from government, the challenges would be overcome.

He was responding to a number of complaints about the service, among them long queues, late arrivals, the length of time taken to process grants and the location of pay points.

Criticism of CPS' service came to a head last week when a 31-one-year-old woman died while waiting in line for her social grant.

Serge Belamant, the chief executive of Aplitec, of which CPS is a subsidiary, said the current glitches were not surprising given the particular logistical problems in the Eastern Cape.

These were compounded by the introduction of new smart card technology and the fact that many of those operating the system were previously disadvantaged people who lacked basic skills.

"It takes time for everyone to understand what it (the technology) does. Our staff in the Eastern Cape need to be trained," Belamant said.

- SAPA